accredited investor process

[Jared Carpenter]

How does one become an "accredited multi family investor" and what criteria is used to measure this?

I am currently in the education phase of my journey, but also realize that I may be in a position to invest into larger MF deals. Lastly, I understand for out of state multifamily loans, Fannie will only look at you if you have 2+ years of out of state experience - if I was able to involve myself into some larger out of state MF deals through this route, in the eyes of Fannie would this experience check that box?

Thanks!!!

[Michael Le]

Accredited investor is a definition determined by the SEC. But basically the part that is likely relevant to you is measured either by income or net worth. 

For income, you have to have income of more than $200k for the previous 2 years with the likelihood of you achieving the same in the upcoming year. This requirement can be $300k for a couple, which is good if you barely miss out at $175k for example but your spouse makes $125k, so you qualify together. 

For net worth, you have to have a net worth of $1M excluding your primary residence. Your net worth is your cash, retirement funds, business assets, other assets, etc, minus all your debt.